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Obama calls on Congress to stop sequestration, pass cyber bill

President Barack Obama, in his fifth State of the Union, reiterated many of the
common management themes that have been at the center of the administration over
the last four years.

The president Tuesday night pressed for balanced deficit reduction and emphasized
the need to stop sequestration from going into effect. He, once
again, told Congress to pass comprehensive cybersecurity legislation. And, Obama
said the Defense Department would continue to invest in new capabilities while
reducing waste.

Additionally, he focused on manufacturing, energy and education that will give the
departments of Defense, Energy and several others new mandates.

"Tonight, I'll lay out additional proposals that are fully paid for and fully
consistent with the budget framework both parties agreed to just 18 months ago,"
Obama said. "Let me repeat — nothing I'm proposing tonight should increase our
deficit by a single dime. It's not a bigger government we need, but a smarter
government that sets priorities and invests in broad-based growth."

That idea of a smarter government starts with figuring out how to cut the deficit.

Obama said sequestration cuts are not the way to go as they are "sudden, harsh,
arbitrary cuts [that] would jeopardize our military readiness. They'd devastate
priorities like education, energy, and medical research. They would certainly slow
our recovery, and cost us hundreds of thousands of jobs."

Sequestration cuts totaling $85 billion across nearly every agency are scheduled to begin
March 1 and could mean furloughs of hundreds of thousands of federal employees
and a significant reduction in citizen services.

Obama said those in Congress who have proposed cutting from only civilian agencies
and not DoD are mistaken.

Instead, Obama called for "a balanced approach to deficit reduction, with spending
cuts and revenue, and with everybody doing their fair share."

He said a balanced approach means changing the way government pays for Medicare
and getting rid of tax loopholes that would save hundreds of billions of dollars.

"Now is our best chance for bipartisan, comprehensive tax reform that encourages
job creation and helps bring down the deficit," he said. "The American people
deserve a tax code that helps small businesses spend less time filling out
complicated forms, and more time expanding and hiring; a tax code that ensures
billionaires with high-powered accountants can't pay a lower rate than their hard-
working secretaries; a tax code that lowers incentives to move jobs overseas, and
lowers tax rates for businesses and manufacturers that create jobs right here in
America. That's what tax reform can deliver. That's what we can do together."

Like sequestration that was never supposed to happen, Obama said Congress and the
Executive Branch need to stop moving from one budget crisis to the next.

"Let's set party interests aside and work to pass a budget that replaces
reckless cuts with smart savings and wise investments in our future," he said.
"And let's do it without the brinksmanship that stresses consumers and scares off
investors. Let's agree, right here, right now, to keep the people's government
open, pay our bills on time, and always uphold the full faith and credit of the
United States of America. The American people have worked too hard, for too long,
rebuilding from one crisis to see their elected officials cause another."

Beyond the potential sequestration cuts, Obama called for more attention to the
threat of cyber attacks.

He signed the much-anticipated cybersecurity Executive Order Tuesday, creating new
roles for the National Institute of Standards and Technology, the Department of
Homeland Security and several other agencies to create standards and improve
information sharing.

"Now, Congress must act as well, by passing legislation to give our government a greater capacity
to secure our networks and deter attacks," Obama said.

Part of that cyber deterrence effort comes from DoD. Obama promised to invest in
new capabilities, while reducing waste and wartime spending.

"We will ensure equal treatment for all
service members, and equal benefits for their families - gay and
straight. We will draw upon the courage and skills of our sisters and daughters,
because women have proven under fire that they are ready for combat," he said. "We
will keep faith with our veterans - investing in world-class care, including
mental health care, for our wounded warriors; supporting our military families;
and giving our veterans the benefits, education, and job opportunities they have
earned."

DoD also will play a big role, along with Energy, to create three more
manufacturing hubs where businesses can partner with government to turn areas of
the country into "global centers of high-tech jobs."